Tech firm LeEco and six other companies inked an agreement to set up a 2.9 billion Chinese yuan property insurance company, Belt and Road Property Insurance Co., Caixin reported Aug. 7, citing a statement from one of the companies.
The new company will provide insurance to companies along the Belt and Road trade route and its business scope will include property-loss insurance, liability insurance, agricultural insurance, short-term health insurance and accident insurance.
LeEco unit Letv Investment Management will invest 435 million yuan in the company for a 15% stake. Wintime Energy Co. and Chia Tai Tianqing Pharmaceutical Group Co. Ltd. will each hold a 20% stake. Other shareholders are CEFC Shanghai International Group Ltd., Xiamen Gaoxu Co. Ltd., Zhengxinglong Real Estate (Shenzhen) Co. Ltd. and Zhejiang Taikang Pharmaceutical Group Co. Ltd.
The China Insurance Regulatory Commission has not yet approved the establishment of the new insurer.
As of Aug. 4, US$1 was equivalent to 6.72 Chinese yuan.